A few years ago we couldn't have written an article like this, back then a mixed use development was simply flats above a shop. Nowadays mixed use development has taken on a whole new meaning; well actually it has lost all meaning, because it can mean pretty much anything: mixed retail and leisure, retail, office and leisure, office and leisure, office and retail, office and student accommodation, leisure and student accommodation or any mix of the above.
There are mixed use developments in tower blocks and huge single buildings, like the newly proposed Lewis's Building, which is a 420,000 sq ft, 9 storey building near Liverpool's Central Station. The scheme will consist of mixed leisure and retail use and a link through to Central Station, Liverpool. Developments like this make for excellent commercial property investment opportunities, because space is very limited in city centre locations.
But there are also developments of multiple buildings across many acres, like the new $3.5 billion 20 acre development on the site of Chicago's historic old post office on the banks of the Chicago River. The development, by International Property Developers Inc will feature the tallest tower in the US at 2000 feet and consist of the following:
- 6.2 million square feet of entertainment space, including retail and restaurants
- 4.1 million square feet of hotel space in 7,500 rooms
- 3.8 million square feet of residential space
- 2 million square feet of office space
- 12,000 parking spaces, free for shoppers
- 20 acre rooftop garden and park
- Commitment to state-of-the-art green building standards
- River walks along the east and west banks of the Chicago River
For someone considering investing in commercial property, developments like this offer a whole host of opportunities. Interested parties should seek commercial property investment advice in order to make the right investment for them and/or to maximise the returns.
There are also many resort developments which are mixed use developments because they build spaces for shops, bars, restaurants and amenities within the resort, which then go out to big franchises like McDonalds etc. Depending on the location these units can make for excellent commercial investment property, low competition, high yields.
Mixed use developments are becoming more and more popular as developers spot opportunities to buy huge buildings at massively reduced prices, and to benefit from government money in that redeveloping these buildings is to regenerate a huge part of city-centres etc. Mixed use developments are also a low risk opportunity, which makes them attractive to commercial property investment funds.
Commercial property investments UK are growing at the moment and a dream partnership is mixed-use developments offering student accommodation and amenities that students need. These make it easier to calculate commercial property investment yields. Meanwhile the student occupancy is often guaranteed as part of mainstream accommodation for one or more universities, making for an easy to calculate yield on that side as well.